HDFC Bank, ONGC, Adani Enterprises, ICICI Bank, Adani Ports & SEZ, Coal India, HDFC Life and NTPC stocks are likely to see passive fund inflows totalling $187 million as a result of quarterly rejig of NSE Nifty indices, said Nuvama. The key outflows, totalling $116 million, will be seen in Bharat Electricals, IndusInd Bank, Axis Bank, Reliance Industries, AU Small Finance Bank, Bank of Baroda, NHPC and JSW Steel shares. The adjustment should take place on 28 June, while the changes will come into effect from 30 June.
The quarterly recapping changes will affect the weightage of many shares in the Nifty 50 index, said Nuvama. The brokerage projected that the weightage of two Adani group companies’ shares, Adani Enterprises and Adani Ports & SEZ, will increase by 0.09% and 0.07% respectively. HDFC Life, Bharti Airtel, Coal India, and HDFC stocks are also likely to see their weights go up. Reliance Industries shares will have the biggest drop in weightage, falling by 0.04%, as JSW Steel, Bajaj Auto, Infosys, ITC, TCS, HDFC Bank, and ICICI Bank stocks follow suit.
Why recapping happens
The capping factor of stocks in all the Nifty Indices, including Bank Nifty and NSE Nifty 50, is realigned upon change in equity, investible weighted factor (IWF), replacement of scrips in the index, periodic rebalancing. It occurs on a quarterly basis on the last trading day of March, June, September, and December by taking into account closing prices as on T-3 basis, where T-day is the last trading day of March, June, September, and December.